Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday November 22.
Nike (NKE) has been performing well in spite of the NBA lockout; the stock is up 16% and management is boosting the dividend, a move which is a clear sign of confidence. Is this dividend hike enough of a reason to buy the stock? Cramer used fundamental data from other companies to back up a bullish thesis. VFCorp (VFC) and Under Armour (UA) reported strong quarters. Foot Locker (FL) is not seeing a slowdown in same-store sales and reported strong demand for Nike merchandise. FL is even strong in Europe and reports "little impact" from the NBA lockout. Hibbett Sports (HIBB) beat earnings estimates by 8 cents and credited Nike as one of the key drivers of its profits. Cramer is bullish on Nike, and took some calls.
- The Dow fell 54 points on Tuesday as stocks were once again victims of the stalemate in Washington and woes in Europe. While world leaders fail to find solutions, U.S. companies like Chipotle Mexican Grill (CMG) and Panera Bread (PNRA) are reporting rising demand, Home Depot (HD) raised its guidance and dividend, some state Federal Reserves are reporting a rise in hiring, and non-residential housing seems to be looking up. Stocks should be up on this good domestic news, but ineffective world leadership is to blame for the absence of a rally.
- JPMorgan (JPM) and Bank of America (BAC) preferred shares are not buys, and "there is no reason to be in any of them."
- Amazon (AMZN) is spending money to become more competitive, and while this is great for customers, it is not such welcome news for shareholders. Maybe Amazon needs to spend to win, but investors should wait to buy.
Off The Charts: Qualcomm (QCOM)
While tech should be a strong sector given the season, the space is quite levered to Europe, and as a result, tech stocks have been taken down with European woes. Cramer decided to take a look at the chart of Qualcomm (QCOM), which produces intellectual property for 3G, 4G and the smartphone revolution. The company made bullish remarks at its analyst day and is down only 5 points from its 52-week high. Cramer used the technical analysis of Carolyn Boroden of FibonacciQueen.com. Boroden uses Fibonacci ratios, which measure the lengths of rallies and declines to predict the future movement of stocks. According to Qualcomm's prior movements, Boroden thinks QCOM's next move up could be soon and may be to $63, a 17% increase, and only then will it run against resistance. At around $52 lies the floor where the stock has tended to bounce off of as investors start to buy. The real sign that QCOM's move upward has begun in earnest is when its 8-day moving average crosses over its 34-day moving average. According to Boroden, that would be the time to buy. Cramer doesn't think bulls need to wait for that point, but can start a small position now and buy more later when the stock declines on the next European worry.
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